Home Altcoins News Ripple (XRP) on Send Now and Pay Later With Line of Credit

Ripple (XRP) on Send Now and Pay Later With Line of Credit

Ripple XRP

Ripple knows very well that freeing up capital for customers’ cross-border transactions will be very inefficient. However, at the same time, it is important to create credit arrangements for each destination market, which is also a time-consuming process.

With a line of credit from Ripple, financial institutions will be able to use XRP to complete instant, low-cost cross-border transfers. Users will be able to lock in a rate at the time of the payment, then they will be able to repay it when it’s convenient for them, for a small fee.

However, this is only for use by eligible institutional RippleNet customers, and not for consumers, general public, or retail customers. Also, the availability varies by jurisdiction and is subject to change.

Asheesh Birla, GM of RippleNet previously stated, “Lower Your Cost of Capital  “Early customer feedback on the Line of Credit beta shows that the service is helping money transfer service businesses make global transactions even more affordable for their customers.”

This is valuable because it helps institutions improve their working capital position to fund fresh growth for their business.

It is scalable as it is possible to access any global market by using simple credit arrangement through RippleNet.

It is efficient as it starts payments without having to manage the account balance.  It is cost effective, as there are benefits from competitive rates that lower the cost of capital.

To get started with Ripple’s Line of Credit, users need to chat to give an overview of the business goals and on how it will be possible for Ripple to help.  Users can make repayments and they will be able to pay back each draw on a fixed repayment schedule which is convenient for them.

To send transactions, users use XRP, which is provided by Ripple to complete their cross-border transactions.  Users can get more funds to pay off their balance and more credit will be automatically made available.

Since,RippleNet’s security capabilities are SOC 2 certified, they are able to ensure operational excellence. 

For clarity, System and Organization Controls 2 (SOC 2) are a set of internal control reports which ensure service organizations have the appropriate processes in place for secure data management and processing.

While all these are happening one of the users stated, I’m more curious how we normal folk can become financial institutions. If ripple and XRP is for the banks, then we will become banks.

 

 

 

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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